CFTC Positioning Report: EUR net longs in multi-month lows

Pablo Piovano FXStreet

These are the main highlights of the CFTC Positioning Report for the week ended on October 6h:

Net longs in EUR receded to levels last seen in late July. Concerns over the second wave of the coronavirus and its impact coupled with increasing restrictions already in place by several countries appear to have undermined the confidence of a rapid economic recovery in the region. In addition, the recent dovish tone from the ECB might have played against the European currency as well.
USD net shorts dropped to the lowest level so far this year around 3K contracts. Fears that the pandemic could undermine the recovery appear to have lent some support to the buck in past sessions. However, the selling sentiment around the dollar could well come back pari passu with further consensus of a Biden win, as this view is already perceived as negative for the greenback.
Still in the safe haven universe, speculators trimmed their gross longs in JPY for the third week in a row, taking the net position to 4-week lows around 21.1K contracts. Regarding CHF, net longs stayed pretty much unchanged at 2-week highs.
Net longs in Gold rose to the highest level since July 21^st following concerns over the health of President Trump and the unremitting advance of the COVID-19 pandemic.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD trims losses and returns to the 1.1750 area

The US Dollar resumed its decline in the American afternoon, helping EUR/USD trim early losses. The pair trades around 1.1750 as market participants gear up for the European Central Bank monetary policy decision and the United States Consumer Price Index.

GBP/USD consolidates above mid-1.3300s as traders await BoE and US CPI report

The GBP/USD pair struggles to capitalize on the overnight bounce from the 1.3310 area, or a one-week low, and oscillates in a narrow band during the Asian session on Thursday. Spot prices currently trade around the 1.3370 region, down less than 0.10% for the day, as traders opt to wait on the sidelines ahead of the key central bank event risk and US consumer inflation data.

Gold declines on profit-taking, USD strength ahead of US CPI release

Gold price edges lower below $4,350 during the Asian trading hours on Thursday. The precious metal retreats from seven-week highs amid some profit-taking and a rebound in the US Dollar (USD). The potential downside for the yellow metal might be limited after the recent US jobs data reinforce market expectations of further interest rate cuts by the US Federal Reserve and drag the USD lower.